Regulation 16 - Lock-in of specified securities held by the promoters - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

PART IV: LOCK-IN AND RESTRICTIONS ON TRANSFERABILITY Lock-in of specified securities held by the promoters 16. 1 [ (1) ] The specified securities held by the promoters shall not be transferable (hereinafter referred to as lock-in ) for the periods as stipulated hereunder: a) minimum promoters contribution including contribution made by alternative investment funds or foreign venture capital investors or scheduled commercial banks or public financial institutions or insurance companies registered with Insurance Regulatory and Development Authority of India 7 [ or any non-individual public shareholder holding at least five per cent. of the post-issue capital or any entity (individual or non-individual) forming part of promoter group other than the promoter(s) ] referred to in proviso to sub-regulation (1) of regulation 14 , shall be locked-in for a period of 3 [ eighteen months from the date of allotment in the initial public offer ] ; 4 [ Provided that in case the majority of the issue proceeds excluding the portion of offer for sale is proposed to be utilized for capital expenditure, then the lock-in period shall be three years from the date of allotment in the initial public offer.] (b) promoters holding in excess of minimum promoters contribution shall be locked-in for a period of 6 [ six months] from the date of allotment in the initial public offer. 4 Provided that in case the majority of the issue proceeds excluding the portion of offer for sale is proposed to be utilized for capital expenditure, then the lock-in period shall be one year from the date of allotment in the initial public offer.] 6 [ Explanation : For the purpose of this sub-regulation, capital expenditure shall include civil work, miscellaneous fixed assets, purchase of land, building and plant and machinery, etc.] 2 [ (2) The SR equity shares shall be under lock-in until conversion into equity shares having voting rights same as that of ordinary shares or shall be locked-in for a period specified in sub-regulations (1), whichever is later. ] ************ NOTES:- 1. Numbered as (1) vide Notification No. SEBI /LAD- NRO /GN/2019/29 dated 29-07-2019 2. Inserted vide Notification No. SEBI /LAD- NRO /GN/2019/29 dated 29-07-2019 3. Substituted Vide Notification No. SEBI/LAD-NRO/GN/2021/45. Dated 13-08-2021 before it was read as, three years from the date of commencement of commercial production or date of allotment in the initial public offer, whichever is later 4. Inserted vide Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/178 dated 17-05-2024 5. Substituted Vide Notification No. SEBI/LAD-NRO/GN/2021/45. Dated 13-08-2021 before it was read as, one year 6. Substituted Vide Notification No. SEBI/LAD-NRO/GN/2021/45. Dated 13-08-2021 before it was read as, Explanation : For the purposes of this clause, the expression date of commencement of commercial production means the last date of the month in which commercial production of the project in respect of which the funds raised are proposed to be utilised as stated in the offer document, is expected to commence. 7. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/178 dated 17-05-2024